# Application under the Small Community **Air Service Development Program**
**Docket DOT -** **OST -** **2012 -** **0069**



# APPLICANT: Los Alamos County **Sponsor: Los Alamos County**

**DUNS #: 06** **- 942** **- 3424**  **TAX ID #: 85 -** **6000679 Congressional Distric** **t : 03** Page **1** of **16**



### The Following Supports Los Alamos County’s Grant Application Under the Small

**Community Air Service Development Program**

**BACKGROUND :**  **Los Alamos**  **County enjoyed**  **the benefits**  **of scheduled**  **air service**  **for nearly**  **50 years.**  **S ervice**  **began in**  **1948 when**  **the Atomic**  **Energy Commission**  **contracted with**  **Carco Air**  **Service for**  **scheduled flights**  **between Los**  **Alamos and**  **Albuquerque, New**  **Mexico; this,**  **in s**  **upport of**  **the Manhattan**  **project. P** **assenger demand**  **was substantial.**  **T he**  **airline maintained**  **a seven**  **round trip**  **flight schedule**  **carrying passengers**  **(mostly Los**  **Alamos National**  **Lab employees)**  **to the**  **Albuquerque “** **Sunport ”**  **for connecting flights around the wor ld.** 

**In 1970,**  **the Atomic**  **Energy Commission**  **contracted with**  **Ross Aviation**  **for this**  **service. R** **oss raised**  **the number**  **of available**  **round trip**  **flights to**  **nine. I**  **n addition**  **to schedule**  **service, Ross**  **flew**
**on -** **demand charter**  **operations to**  **locations in**  **Nevada an** **d California**  **as well**  **as other**  **parts of**  **the west.**  **A ircraft**  **utilized during**  **the Ross**  **Aviation era**  **included the**  **de Havilland**  **dash 6** **, and**  **the 50**  **passenger de**  **Havilland dash**  **7. As**  **many as**  **35 ,000**  **passengers per**  **year flew**  **in and**  **out of**  **Los Alamos**  **Airport in**  **the late**  **1980s**
**. While**  **Carco and**  **Ross Aviation**  **were in**  **business, Los**  **Alamos was the second busiest commercial service airport in New Mexico**  **– second only to Albuquerque.** 

**In the**  **early 1990’s,**  **financial considerations**  **prompted the**  **Department of**  **Energy to**  **red uce**  **financial support**  **of the**  **airline. T** **o meet**  **the challenge,**  **Ross Aviation**  **developed a**  **Workforce Restructuring**  **Plan in 1994. Cutbacks continued until Ross Aviation’s contract with DOE was cancelled in 1996.**Page **2** of **16**

**Industry observers of the day would assume t hat Los Alamos’ air service market would be acquired**  **by carriers**  **operating with**  **the benefit**  **of Essential**  **Air Service**  **funds. After**  **all, the**  **airport was**  **a busy**  **hub for**  **federal business,**  **and schedule** **d service**  **was being**  **provided on**  **October 24,**  **1978. Unfortu**  **nately, wording**  **contained in**  **EAS ’**  **enabling legislation,**  **rendered Los**  **Alamos ineligible**  **to participate**  **in the**  **p rogram.**  **T hough**  **this remote**  **community was**  **and remains**  **a perfect**  **example of**  **why the**  **EAS program**  **was created,**  **the manner**  **in which**  **the Federal**  **Aviati on**  **Act of**  **1958 defines**  **a certificated**  **air carrier**  **coupled with**  **the definition**  **of an**  **“eligible point”**  **ruled out**  **Los Alamos’**  **pa r** **ticipation.**

**At the**  **time of enactment of the Airline Deregulation Act (ADA) in 1978, there were**  **746 communities**  **in the**  **United Stat** **es and**  **its territories**  **listed on**  **air car** **rier certificates**  **issued under**  **S ection**  **401 of**  **the Federal**  **Aviation Act**  **of 1958.**  **Ross Aviation**  **was not**  **among these.**  **Before deregulation,**  **operating certificates**  **required air**  **carriers to**  **provide two**  **daily round**  **trips at**  **each point**  **on their**  **certificate. (** **Los Alamos**  **had a**  **nine round**  **trip schedule!)**  **D uring**  **the pre** **- ADA**  **debates, the**  **prospect of**  **allowing carriers**  **to terminate**  **scheduled service**  **without prior**  **Government approval**  **raised concern**  **that communities**  **with relativel** **y lower**  **traffic levels**  **would lose**  **service entirely**  **as carriers**  **shifted their**  **operations to**  **larger, potentially**  **more lucrative**  **markets. T** **o address**  **this concern,**  **Congress added**  **Section 419**  **to the**  **Federal Aviation**  **Act of**  **1958, which**  **established the**  **Essential Air**  **Service (EAS)**  **program, “...**  **to ensure**  **that smaller**  **communities would**  **retain a**  **link to**  **the national air transportation system, with Federal subsidy where necessary.”**

**The Airline**  **Deregulation Act**  **amended the**  **Airport and**  **Airway Development**  **Act of**  **1970 to**  **stipulate that**  **on October**  **24, 1978,**  **any public**  **airport that**  **was regularly**  **served by**  **a certificated**  **air carrier**  **(other than**  **a charter**  **air carrier)**  **would be**  **deemed to**  **be an**  **air carrier**  **airport for**  **purposes of**  **the**Page **3** of **16**

**Act. T** **hese air**  **carriers had**  **operating certi** **ficates issued**  **under Section**  **401 of**  **the Federal**  **Aviation Act**  **of 1958.**  **P roper**  **parlance would**  **note the**  **carrier had**  **a “Certificate**  **of Public**  **Convenience and**  **Necessity.” W** **hen Section**  **419 was**  **added to**  **the Federal**  **Aviation Act,**  **this term**  **of art**  **continued. By**  **limiting participating**  **communities to**  **those served**  **by a**  **carrier that**  **had a**  **Certificate of**  **Public Convenience**  **and Necessity**  **rendered Los**  **Alamos County ineligible**  **for EAS.**  **R oss Aviation did not**  **have a Certificate of Public a Convenience and Necessity. Ross was operating under the terms of a**  **contract with the federal government.**

**Further frustrating**  **access to**  **EAS was**  **the definition**  **of an**  **“eligible point”**  **(a community**  **eligible to**  **receive Essential**  **Air Service**  **subsidies). S** **ection 419(a)(1)**  **defined an**  **“eligib le**  **point” to**  **which, on**  **the date of enactment, any air carrier –**  **(A) Provided service pursuant to a certificate issued under section 401; or**  **(B) Was authorized to provide such service, but such service was suspended on the date of**  **enactment. Section**  **(b) (1)**  **(A) further**  **defined “eligible**  **point” to**  **include “any**  **point in**  **the United**  **States which**  **had been**  **deleted from**  **a certificate between July 1, 1968 and October 24, 1978 and which the Board**  **designates.” Again,**  **since Los**  **Alamos was**  **not served**  **by a**  **carrier that**  **had a**  **Certificate of**  **Public Convenience**  **and Necessity,**  **Los Alamos**  **was not**  **considered an**  **“eligible point”**  **and wa** **s therefore**  **not identified**  **on the**  **“LIST OF**  **ELIGIBLE POINTS”**  **compiled by**  **The Bureau of**  **Pricing and**  **Domestic Aviation (Civil Aeronautics Board) in Janua** **ry 1979. (See Attachment 1)**
**Though Carco**  **Air Service**  **and Ross**  **Aviation were**  **not certificated**  **under the**  **authority of**  **Section 401**  **of the**  **Federal Aviation**  **Act of**  **1958, these**  **carriers met**  **the requirements**  **necessary to**  **secure Economic**  **Authority as**  **required/awarded by**  **the U.S.**  **DOT. T** **hey a** **lso met**  **the requirements**  **to**Page **4** of **16**

**secure Safety**  **Authority (an**  **Operating Certificate)**  **as required/awarded**  **by the**  **FAA. T** **hey provided**  **uninterrupted scheduled**  **passenger service**  **for Los**  **Alamos County**  **for 48**  **years. I**  **ronically, air**  **service began 10 years before enact ment of the Federal Aviation act of 1958 from which Section 401**  **evolves. I** **t is**  **unfortunate that**  **Los Alamos**  **has not**  **been eligible**  **to take**  **advantage of**  **the Essential**  **Air Service**  **program based**  **on the**  **premise it**  **was not**  **receiving regularly**  **scheduled air**  **servi ce**  **on October 24, 1978. It was.** 

**Even though**  **EAS funding**  **was unavailable,**  **three airlines**  **attempted to**  **pick up**  **the market**  **left by**  **Ross Aviation. All three failed for reasons not related to a lack of market potential** 
**. T** **he first carrier, Peacock**  **Airlines ,**  **dropped out**  **due to**  **contract disputes**  **with the**  **provider of**  **its aircraft.**  **T his**  **service began**  **in late**  **1996 and**  **only survived a few weeks. Peacock was followed by Mesa Airlines.**  **Mesa service**  **began in**  **2000 and**  **lasted four**  **months. A** **n internal**  **survey conducted**  **at the**  **Los Alamos**  **National Lab**  **noted the**  **primary reason**  **for Mesa’s**  **failure was**  **lack of**  **flight frequenc** **y and**  **the high**  **price of**  **a ticket**  **relative to**  **other options** 
**. O** **f the**  **600 respondents**  **to a**  **user survey,**  **86% noted**  **th e**  **high ticket**  **price and**  **lack of**  **frequency as**  **the number**  **one reasons**  **why they chose not to**  **fly with**  **Mesa Airlines.**  **( A**  **$69 air**  **fare thirteen**  **ye ars**  **ago does**  **seem excessive**  **; p** **rior to**  **that, non** **** **Laboratory employees**  **could travel**  **to Albuquerque**  **on Ross**  **Aviation aircraft**  **for $35.**  **As for**  **frequency ,**  **Mesa Airlines**  **scheduled 4**  **round trip**  **flights to**  **Albuquerque –**  **not enough**  **according to**  **the users**  **. )**  **The t** **hird attempt**  **at scheduled**  **air service**  **was made**  **by Rio**  **Grande Airlines**  **which flew**  **Cessna 208**  **Caravans. R** **io Grande**  **had the**  **best chance**  **for success,**  **but the**  **fact that**  **they had**  **no interline**  **agreements caused**  **their early**  **demise. R** **io Grande**  **flew for**  **four mont** **hs, terminating**  **service in 2002.** Page **5** of **16**

**CURRENT AIR SERVICE NEED T** **he above**  **treatise begs**  **t he**  **question :**  **For a**  **small community**  **of only**  **18,000 people,**  **how was**  **Los Alamos**  **able to**  **produce such**  **large enplanement**  **figures? The**  **answer is**  **the presence**  **of the**  **Los Alamos**  **National Lab**  **(LANL) ,**  **one of**  **the country’s**  **premier national**  **laboratories with**  **a historic**  **mission in nuclear safety and a growing mission in national energy security**
**.**

**Attachment 2**  **lists the**  **airports that**  **over 20,000**  **Los Alamos**  **National Lab**  **employees travelled**  **to in**  **2010. The destinations are ranked in the order of frequency used –**  **the most frequent destination is first**  **(Dulles, Washington),**  **the least**  **frequented destination**  **is last**  **(Yuma, Arizona).**  **A q**  **uick sc an**  **of the**  **list notes**  **that of**  **the 359**  **destinations identified**  **, Heathrow,**  **Paris, Moscow,**  **Tokyo, and**  **Vienna**
**are in**  **the top**  **35. F** **rankfurt, Beijing,**  **Kiev, Prague,**  **Milan are**  **among their**  **many other**  **international destinations.**  **In fact,**  **of the**  **359 destinations, 172 were international ports of call**  **(48%). The**  **airport of**  **origin for**  **all flights**  **was the**  **Albuquerque Sunport.**  **The main**  **origin/destination market**  **for Los**  **Alamos is therefore,**  **Albuquerque.**

**The Los**  **Alamos National**  **Lab is**  **an immense**  **organization. E**  **leven t** **housand (11,000)**  **employees work**  **at the**  **Lab and**  **travel is**  **critical to**  **their work**  **production effort.**  **T hey**  **are the**  **largest employer**  **in northern**  **New Mexico**  **and reserve**  **roughly 25,000**  **air seats,**  **expending $9,**  **000,000 annually**  **on LANL**  **related air**  **travel. I**  **n 201**  **0, the**  **Los Alamos**  **National Lab**  **enplaned 21,844**  **passengers at**  **Albuquerque ’s**  **Sunport. (** **Source: Rio**  **Grande Travel**  **which handles**  **airline ticketing**  **for the**  **Lab’s travel**  **off ice;**  **and Southwest**  **Airlines.) T** **hese people**  **drive to**  **Albuquerque (a**  **two hour**  **drive) in** 
**r ental cars or privately owned vehicles.** 

**NOTE: T** **h e**  **21,844 enplanement**  **figure does**  **not include**  **any of**  **the estimated**  **20,000 official**  **visitors that**  **travel to**  **Los Alamos**  **National Lab** Page **6** of **16**

**from around**  **the world**  **on an**  **annual basis.**  **( Rio**  **Grande Airlines’**  **lack of**  **interline agreements**  **was instrumental**  **in their**  **inability to**  **capture these**  **passengers which contributed to their failure.)**
**As for**  **the non** **- Lab**  **employee (the**  **local citizen),**  **Los Alamo** **s County**  **is one**  **of the**  **wealthiest counties**  **in the**  **nation ,**  **and residents**  **and local**  **employees travel**  **more than**  **the average**  **population, even commuting to and from work from other states**  **. The median household income of Los Alamos County**  **is $103,643. This com pares**  **to the**  **national average**  **of $46,326**  **and the**  **New Mexico**  **average of**  **$43,000. L** **os Alamos**  **has the**  **highest concentration**  **of doctorial**  **degrees in**  **the country.**  **D riven**  **by those**  **working at**  **the Lab,**  **it has**  **a diverse**  **populace, both**  **culturally and**  **ethnically. Citizens**  **are attracted**  **from around**  **the world,**  **resulting in**  **travel needs**  **for residents,**  **as well**  **as friends**  **and family**  **across the**  **country and**  **abroad. T** **he 21,844**  **enplanement figure**  **noted above**  **also does**  **not include travel taken by citizens of Los Alamos who**  **drove to Albuquerque to connect with flights for**  **personal or business travel of their own.**

**There is**  **a demand**  **for service** **, but**  **why have successors**  **to Carco**  **and Ross Aviation**  **failed? B** **ased**
**on study**  **of the**  **three airlines**  **that tried,**  **it is**  **evident that**  **the reason**  **Ross Aviation’s**  **successors failed was due to the lack of:** 

- **interline agreements**

- **frequency**

- **competitive pricing .**

**To survive,**  **a replacement**  **carrier must**  **successfully wrap**  **these into**  **a workable**  **program –**  **on e**  **that offers**  **convenience to**  **the user and profitability for**  **the airline.**  **To this**  **end, Los Alamos County has**  **been in**  **discussions with New Mexico Airlines, a wholly owned subsidiary of Pacific Wings Airlines.**  **New Mexico**  **Airlines presently**  **provides service**  **t o**  **the Albuquerque**  **Sunport from**  **various New** Page **7** of **16**

**Mexico Communities.**  **T hey**  **have ticket**  **counter space**  **at the**  **Sunport; they**  **have interline**  **agreements with**  **over 65**  **carriers; and**  **they are**  **hosted on**  **SABRE, Amadeus,**  **Worldspan ,**  **Travelocity, Priceline, Kayak, Orbitz, et c.** 

**Without question,**  **the primar**  **y user** **s of**  **scheduled air**  **service will**  **be the**  **employees of** **, and**  **visitors to,**  **the Los**  **Alamos National**  **Lab oratory** **. These**  **include the**  **staff of**  **the International**  **Atomic Energy**  **Commission (** **a large**  **number of**  **which are**  **Los Alamos**  **employees )**  **federal staff,**  **political representatives,**  **contractors, global**  **scientists and**  **others. However**  **of no**  **lesser importance**  **is the**  **far reaching**  **impact scheduled**  **air service**  **will have**  **on Los**  **Alamos County,**  **its citizens** **, and**  **its economic**  **development ini** **tiatives. T** **he County**  **of Los**  **Alamos is**  **well aware**  **of the**  **importance of**  **scheduled air**  **service to**  **its community,**  **including business**  **leaders and**  **average citizens**  **who currently**  **must drive**  **nearly two**  **hours to**  **the Albuquerque**  **Sunport to**  **catch connecting**  **flights**
**. In**  **2010, the**  **County Council**  **adopted its**  **Economic Viability**  **Strategic Plan**  **(EVSP). A**  **broad, far**  **reach ing**  **plan ,**  **its purpose** **, to**  **improve and**  **enhance the**  **quality of**  **life of**  **all Los**  **Alamos residents.**  **T he**  **E VSP**  **enunciated four**  **strategic goals**  **that provide**  **a basis**  **of action**  **for the**  **County. Goal #2 states**  **: Diversify the Economic Base.**  **Nine supporting actions were listed that would**  **advance this**  **objective, one**  **of the**  **most important**  **being :**  **“Reestablish scheduled**  **commercial passenge r service.”** 

**Diversification refers to the extent to which the County broadens its base of primary industry. Primary**  **industry activities**  **are those**  **that bring dollars**  **into the**  **community from**  **other places.**  **In past**  **studies, more**  **than 97%**  **of the**  **County’s p**  **rimary industry**  **activity has**  **been estimated**  **to be**  **derived from**  **the Los**  **Alamos National**  **Lab oratory** **. This is the**  **proverbial “all our**  **eggs in** 

**one basket”**  **situation that**  **exposes the**  **Community to**  **increased risk**  **in the**  **event the**  **Lab**Page **8** of **16**

**experiences fluctuations in their funding. Diversification**  **is important**  **as a means to provide**  **a hedge**  **against downward**  **fluctuations in**  **the Lab’s**  **funding .**  **C ommercial**  **air service**  **is a**  **requisite service**  **to attracting**  **the type**  **of diverse**  **high technology**  **businesses Los**  **Alamos is**  **targeti ng**  **with its**  **Economic Vitality**  **Strategic Plan.**  **C ritical**  **national security**  **work is**  **being done in Los Alamos. Valuable federal employee travel time and money is being wasted to the**  **tune of**  **millions of**  **dollars each**  **year because**  **of a**  **lack of**  **proximate commerc** **ial air**  **service, not**  **to mention**  **the fact**  **that important**  **public and**  **private sector**  **leaders have**  **no convenient**  **air transport in or out of Los Alamos .** 

**PRIORITY SELECTION CRITERIA The following supports Los Alamos County’s selection for Priority**  **consideration: Local Funding:** 

- **a. The**  **total Project**  **Cost is**  **$340,000. The**  **SCASDP grant**  **request is**  **for eighty**  **percent or**  **$272, 000**  **– this**  **for development of**  **a pilot program to demonstrate the viability and cost****** **effectiveness of**  **nine daily**  **round trip**  **flight s**  **between Albuquerque**  **and Los**  **Alamos, scheduled**  **to coordinate**  **with commercial**  **flights to**  **and from**  **primary Los**  **Alamos destinations**  **such as**  **Washington Dulles,**  **Regan National,**  **and BWI.**  **The County**  **and its**  **partners are**  **prepared to**  **contribute twenty**  **percent or**  **$68,000 towards**  **the $340,000**  **total cost of the program.**

- **b .**  **L os**  **Alamos County**  **has partnered**  **with the**  **State Division**  **of Aviation**  **with regard**  **to funding.**  **The New**  **Mexico State**  **Charter prevents**  **Air S** **ervice Development**  **funds from**  **being used**  **for subsidy**  **payments .**  **H owever,**  **grant funds**  **can be**  **used for**  **programs that**  **support air service development in other ways such as marketing and advertising. A total** Page **9** of **16**

**of $50** **,000 has**  **been set**  **aside for**  **marketing the**  **new air**  **service program.**  **L os**  **Alamos County will**  **pr o** **v i**  **de $25,000**  **of this amount** **. The remaining $25,000 will be**  **provided by a grant from the State’s Air Service**  **Development grant program**  **.**

- **c. Los**  **Alamos County**  **is in**  **the process**  **of developing**  **a funding**  **relationship with**  **the Los**  **Alamos National**  **Lab. As**  **of the**  **da te**  **of this**  **application, this**  **public -**  **private partnership**  **has not**  **been formalized,**  **however it**  **is expected**  **that by**  **the time**  **a grant**  **is awarded,**  **the Los**  **Alamos National**  **Lab will**  **agree to**  **provide $18,000**  **towards the**  **local share**  **of the**  **program’s 20% match.**  **Timel iness:** 

- **Inasmuch as**  **this program**  **has evolved**  **over the**  **past two**  **years of**  **discussion among**  **County staff,**  **the Los**  **Alamos National**  **Lab, and**  **New Mexico**  **Airlines, little**  **is left**  **to be**  **done prior**  **to initiating**  **service. I** **t is**  **believed the**  **first flights**  **will occur**  **shortly (within**  **90 days) following award of a grant.**  **Multiple Community Cooperation:**

- **The original**  **air service**  **program (developed**  **two years**  **ago) envisioned**  **a consortium**  **of four**  **New Mexico**  **communities: L** **os Alamos,**  **Taos, Ruidoso**  **and Las**  **Cruces. The**  **origin al**  **program envisioned**  **two round**  **trip s**  **to each**  **of these**  **communities for**  **a fixed**  **fee. O** **ver the**  **course of**  **time, Las**  **Cruces and**  **Ruidoso dropped**  **out. Coupled**  **with the**  **fact that**  **a number**  **of inequities**  **were found**  **to exist**  **in the**  **original plan,**  **the program**  **was**
**a bandoned**  **. D** **iscussions with**  **New Mexico**  **Airlines evolved**  **to the**  **concept of**  **subsidizing the**  **airline base**  **on flight**  **segments flown**  **(further described**  **herein). W** **hile this**  **new direction**  **has been**  **taken, there**  **have been**  **many discussions**  **with New**  **Mexico Airlines**  **about using**  **th e**  **new program**  **as a**  **springboard to**  **serve Taos.**  **However, r** **ather than** Page **10** of **16**

**commit to**  **serve Taos**  **at this**  **time, it**  **has been**  **decided to**  **establish the**  **current program**  **and revisit**  **the “Taos**  **connection” at**  **a later**  **date. I**  **nitial indications**  **are that**  **Taos should**  **benefit from the proposed air service program.**

**IMPLEMENTATION PLAN**  **Los Alamos**  **has been**  **in discussions**  **with New**  **Mexico Airlines**  **for the**  **past two**  **years regarding**  **regularly scheduled**  **air service**  **between Albuquerque**  **and Los**  **Alamos. I**  **nasmuch as**  **scheduled air**  **service to**  **Albuquerque represents**  **an increase**  **in efficiency**  **as well**  **as an**  **overall decrease**  **in expenses (fewer rental cars and hotel rooms), the Los Alamos National Lab has figured prominently**  **in the development of the business plan discussed herein.** 

**Facts:**

- **Los Alamos National Lab oratory alone**  **produced 21,844 commercial air**  **passengers in 2010.**

- **Flights from Albuquerque to Washington, D.C. area airports (Dulles, Regan, BWI) accounted for 27% of all LANL travel booked on legacy carriers in 2010.** 

- **Flights from**  **Albuquerque to**  **Washington, D.C.**  **area airports**  **accounted for**  **14% of**  **all LANL**  **travel booked on Southwest Airlines.**

- **Travel from**  **Albuquerque to**  **Washington area**  **airports accounted**  **for 18%**  **of all**  **LANL travel**  **in 2010.** 

**Los Alamos**  **National Lab** **orator y**  **will be**  **the primary**  **user of**  **any airline**  **service operating**  **between Los**  **Alamos and**  **Albuquerque. W** **ith a**  **view to**  **securing maximum**  **ridership from**  **the Lab,**  **a flight**  **schedule was**  **created that**  **maximized convenience**  **for the**  **Washington bound**  **traveler. C**  **urrently ,** Page **11** of **16**

**there are**  **72 flights**  **to Washington**  **D.C. area**  **airports ,**  **and 77**  **flights returning**  **from Washington**  **to Albuquerque. The flights operate from 5:50am to 12:50 am.** 

**A nine**  **round trip**  **flight schedule**  **was prepared**  **and evaluated**  **by New**  **Mexico Airlines,**  **Los Alamo** **s County**  **staff, and**  **Los Alamos**  **National Lab** **oratory (Attachment**  **3a)**
**. T** **he schedule**  **provides exceptional**  **convenience to**  **the LANL**  **traveler. F**  **ully 94.4%**  **of all**  **flights departing**  **Albuquerque to**  **Washington area**  **airports can**  **be met**  **at the**  **Albuquerque Sunport.**  **O f**  **the 72**  **flights, 53**  **will require** 
**a less**  **than 60**  **minute wait**  **time at**  **the departure**  **gate. Only**  **4 flights**  **to Washington**  **will not**  **be served**  **(they leave**  **prior to**  **5:50am). T** **he draft**  **flight schedule**  **is equally**  **convenient for**  **return trips**  **from Washington.**  **Ninety six**  **percent (** **96% )**  **of all**  **return flights**  **will conveniently**  **connec t**  **with fights**  **travelling from**  **Albuquerque to**  **Los Alamos**  **(Attachment 3b)** 
**. A** **ll agree** **, this**  **flight schedule**  **represents convenience to the Los Alamos (especially Washington bound) traveler.**

**Reliable ridership**  **depends on**  **frequency, convenience,**  **and price.**  **Frequency is**  **aptly met**  **with the**  **nine round**  **trip flight**  **schedule. (** **A nine**  **round trip**  **flight schedule**  **proved itself**  **in 48**  **years of**  **operation by**  **Carco Air**  **Service and**  **Ross Aviation.** **) Convenience**  **is met**  **with the**  **timing of**  **flights that**  **arrive or**  **leave from,**  **Albuquerque’s Sunport.**  **T he**  **price break**  **for a**  **one way**  **flight has**  **been established**  **at $39.**  **A t**  **this price**  **(which is**  **only slightly**  **more than**  **one would**  **pay in**  **gas to**  **drive to**  **Albuquerque in**  **their SUV** **; and**  **the airport**  **door -** **to -** **door shuttle**  **is $85**  **one way),**  **it i** **s expected**  **ridership will be stimulated. At the very least, one will think twice before driving.**

**A $39**  **ticket price**  **is clearly**  **affordable. S**  **uch would**  **not be**  **allowed were**  **it not**  **for the**  **chosen aircraft**  **– the**  **Cessna 208**  **Caravan. T** **he operating**  **cost of**  **a Ce** **- 208**  **is among**  **the lowest**  **of the**  **passenger carrying**  **fleet. M** **oreover, flights**  **from Los**  **Alamos to**  **Albuquerque are**  **essentially in**  **the**Page **12** of **16**

**“sweet spot”**  **for this**  **aircraft. T** **he field**  **elevation of**  **Los Alamos**  **is 7171MSL**  **and its**  **runway length**  **at is 6,000 feet** **. The Caravan is not known for its speed**  **, but it only takes 20 minutes to fly from Los**  **Alamos to**  **Albuquerque. C** **ompared with**  **a 2** **- hour**  **drive, flying**  **to Albuquerque**  **becomes increasingly more attractive.** 
**Admittedly, a $39 ticket cost will not cover the**  **cost of**  **op erating**  **such an aggressive**  **flight schedule** 

**– even**  **if the**  **aircraft was**  **fully loaded.**  **T he**  **business model**  **developed considers**  **subsidizing the**  **$39 air fare with a flight subsidy**
**– a fee assessed to each leg of the flight. A flight subsidy of $58.80**  **has been established for flights between Los Alamos and Albuquerque. A round trip flight between**  **Los Alamos and Albuquerque would therefore be $117.60 ($58.80 X 2 = $117.60).**
**By applying**  **this $58.80**  **flight segment**  **to the**  **nine round**  **flight schedule**  **(see Attachment**  **4 ),**  **the total**  **cost to**  **subsidize the**  **program is**  **$287,880. N**  **OTE: t** **his assumes**  **all schedule flights**  **are flown**  **(nine round trips Monday through Friday; one on Saturday and one on Sunday). A benefit of basing** 
**a subsidy**  **on flight**  **segment costs**  **is that**  **if a**  **f light**  **is not**  **flown (i.e.**  **no passengers**  **or a**  **weather cancellation)**  **no subsidy**  **is paid.**  **T he**  **maximum exposure**  **is therefore**  **$287,880. I** **f a**  **less aggressive**  **flight schedule**  **is chosen**  **one of**  **two events**  **would have**  **to occur:**  **either the**  **flight subsidy**  **increases or**  **the ticket**  **price increases.**  **A s of the date of this writing, the chosen path is to**  **increase the t icket cost. For example, if only 18,000 passengers or even 14,000 passengers use the**  **service, air**  **fare would**  **increase to**  **$49 and**  **$59 respectively.**  **T his**  **would not**  **only allow**  **the subsidized**  **operation to**  **continue, it**  **provides an**  **indication of**  **what the**  **trave ler**  **is willing**  **to pay.**  **(If ridership**  **declines at**  **the higher fares,**  **this information**  **will help**  **guide a change in strategy.) In**  **any event,**  **the goal**  **is to**  **secure a**  **reliable annual**  **ridership of**  **22,000 passengers.**  **I t**  **has been** Page **13** of **16**

**determined that**  **22,000 passenge** **rs with**  **a $55**  **per leg**  **ticket price**  **will render**  **the operation**  **profitable and not require a subsidy.**

**GOALS AND OBJECTIVES T** **he goal of th**  **is new program is to secure a level of 22,000 annual enplanements** 
**. At**  **that point, it is expected the ope** **ration will be financially self** **- sufficient. Getting to this level will be the**  **objective of** 
**a marketing**  **program targeting**  **all Los**  **Alamos National**  **Lab employees;**  **the c** **itizens of**  **Los Alamos**  **and surrounding**  **region ;**  **the world**  **scientific community;**  **and Los**  **Alamos National**  **Lab ’s**  **“sister laboratories.”**  **W ith**  **regard to**  **the latter,**  **these include**  **Lawrence -** **Livermore, California;**  **Oakridge, Tennessee;**  **and Sandia**  **Laboratory in**  **both Albuquerque**  **and Livermore,**  **California. R** **eview of**  **past failed**  **attempts to**  **secure scheduled**  **service indica** **tes that**  **little or**  **no effort**  **was placed**  **on marketing**  **the service**  **to inbound**  **travelers. A** **s was**  **mentioned earlier,**  **Los Alamos**  **National Libratory has 20,0000 official visitors a year. Capturing a fair percentage of these inbound travelers**  **could very well sp ell the difference between success or failure.** 

**While a target of 22,000 enplanements is realistic, it is**  **also recognized**  **that it**  **will take**  **time to**  **get to**  **this level**  **of service.**  **I n**  **the final**  **year of**  **Ross Aviation’s**  **operation, annual**  **enplanements totaled**  **1 7,400.**  **C ommunication**  **with retired**  **Lab employees**  **note the**  **lower passenger**  **count was**  **probably the**  **result of**  **discontinued scientific**  **programs that**  **required frequent**  **travel to**  **distant locations**  **like the “Las Vegas Test Site” in Mercury, Nevada. It has been l** **earned that over the course of the Lab’s existence,**  **programs like**  **these come**  **and go.**  **T oday,**  **a large**  **number of**  **Lab employees**  **travel to**  **programs in**  **Carlsbad, New**  **Mexico and**  **Amarillo, Texas** 
**. T** **hey travel**  **in numbers**  **not previously**  **experienced. W** **hile Carlsbad**  **and Amarillo**  **are among**  **the many**  **destinations on**  **the Lab’s**  **travel**Page **14** of **16**

**itinerary, the**  **frequency to**  **which they**  **now being**  **visited is**  **much greater**  **than before.**  **T rends**  **like this are endemic to the mission of the Lab and are likely to continue.** 
**NOTE: T** **he benefit**  **of the**  **proposed air**  **service program**  **can be**  **easily demonstrated**  **when comparing**  **how LANL**  **currently travels**  **to and**  **from Carlsbad,**  **New Mexico,**  **versus using**  **scheduled air**  **service. (** **See Attachment**  **5 )**  **I t**  **has been**  **determined that**  **each trip**  **to Carlsbad**  **using New**  **Mexico Airlines**  **will result**  **in a savings of 9.1% over the cost of driving. This savings**  **does not**  **include transportation**  **related lodging**  **and meal**  **costs, or**  **the 8**  **hours of**  **lost productivity**  **incurred by**  **driving to**  **Carlsbad. (** **Information on**  **Attachment was pr ovided courtesy of the LANL travel office.)** 
**It is**  **the goal**  **of the**  **first year**  **of service**  **to reach**  **the equivalent**  **of 14,000**  **annual enplanements.**  **Lesser patronage**  **can survive,**  **but the**  **goal is**  **to reach**  **a minimum**  **ridership equivalent**  **to 14,000**  **enplanements. By**  **the end**  **of the**  **first year**  **of operation**  **all parties**  **(especially New**  **Mexico Airlines)**  **will have**  **a sense**  **as to**  **the reality**  **of having**  **scheduled passenger**  **service to**  **and from**  **Albuquerque in**  **a Cessna**  **20 8**  **Caravan. I** **t has**  **been determined**  **that all**  **parties have**  **agreed that**  **it would**  **take a**  **minimum of one year before a fair assessment could be made. I** **f the program does not take hold at the end of one year of operation, serious consideration will be given to abandoning the effort.**  **If the program**  **shows promise,**  **th e**  **first year’s**  **audit will**  **provide definitive**  **information regarding**  **what subsidy**  **would be**  **needed to**  **continue the**  **operation. T** **he Los**  **Alamos County**  **Council and**  **Los Alamos National Lab will have to decide whether or not to continue.** 

**For the**  **purpose of**  **identi fying**  **goals and**  **objectives that**  **will be**  **incorporated into**  **the grant**  **agreement ,**  **the following apply:**

- **The County**  **of Los**  **Alamos will**  **establish itself**  **as the**  **legal sponsor**  **responsible for**  **administering the proposed project.**

- **A one** **- year**  **agreement with**  **an airline**  **having ticket**  **counter space**  **at ABQ**  **will be**  **entered i**  **nto between**  **the sponsor**  **and the**  **airline. Said**  **airline will**  **utilize aircraft**  **certified to**  **carry less**  **than**Page **15** of **16**

**10 passengers.**  **(Larger aircraft**  **are not**  **economically suited**  **for a**  **high altitude**  **short flight**  **seg ment operation.**  **Also ,**  **Los Alamos Airport is not presently Certificated under FAR Part 139. )**  **This carrier is expected to be**  **New Mexico Airlines.**

- **The agreement will waive airport use fees.** 

- **A minimum**  **passenger commitment**  **will be**  **established before**  **the car** **rier (or**  **sponsor) will**  **be allowed to abandon the effort.** 

- **Up to $50,000**  **will be committed to wards marketing and promotion.** 

- **The carrier will provide**  **marketing and promotion via establish literature, brochures, website(s), and/or other routine airline promo** **tional vehicles.**

- **A monthly reporting program will be established that will serve to facilitate trend analysis.**

- **Every effort**  **will be**  **expended to**  **“steer” the**  **program to**  **a minimum**  **of 22,000**  **passenger enplanements.**  **T his**  **level of**  **enplanements, at**  **a ticket**  **cost of**  **$55.00 will**  **render the**  **program profitable.** 

- **Three years**  **has been**  **established as**  **a target**  **for th** **e 22,000**  **enplanement goal.**  **A subsidy**  **will not be required at this point. (** **It is recognized a different blend of passenger enplanements and**  **ticket price could yield the same result.)** 

**SUMMARY Los Alamos enjoyed the benefits of scheduled air service to Albuquerque for 48 years. Service was**  **provided by**  **carriers contracted**  **by the**  **Atomic Energy**  **Commission and**  **later the**  **Department of**  **Energy. T** **he DOE**  **discon tinued**  **financial support**  **of the**  **airline in**  **1995. I**  **n 1996**  **scheduled air**  **service ceased**  **completely. U**  **nable to**  **access Essential**  **Air Service**  **Grant funding,**  **succeeding attempts**  **to secure**  **scheduled air**  **service have**  **failed. T** **he Los**  **Alamos National**  **Lab has**  **a**Page **16** of **16**

**su bstantial**  **dependence on**  **air transportation.**  **In 2010**  **alone, nearly**  **22,000 Laboratory**  **employees boarded**  **flights at**  **Albuquerque to**  **destinations around**  **the world.**  **T ravelers**  **currently drive**  **2 hours**  **to Albuquerque**  **or take**  **a shuttle**  **which costs**  **$85 one**  **way .**  **C o** **upled with**  **the socio** **- economic**  **standing of**  **the Los**  **Alamos citizen**  **, there**  **is no**  **question the**  **community would**  **embrace scheduled**  **air service.**
**Study of**  **failed attempts**  **to bring**  **scheduled air**  **service back**  **to Los**  **Alamos indicates**  **a successful**  **airline must have competitive ticket prices and high flight frequency. Negotiations with New Mexico Airlines**  **have yielded**  **a nine**  **round trip**  **flight schedule**  **that offers**  **substantial convenience**  **to: a)**  **employees of**  **the Los**  **Alamos National**  **Labor atory**  **that travel**  **to distant**  **parts of**  **the world**  **; and**  **b) the**  **approximate 20,000**  **official visitors**  **that travel**  **to the**  **Laboratory for**  **scientific research**  **and study.**  **Forty eight**  **percent (48%)**  **of all**  **flights booked**  **by the**  **Laboratory in**  **2010 went**  **to internation** **al destinations.**  **I t**  **can be**  **assumed these**  **destinations represent**  **the homeland**  **of the**  **Laboratory’s 20,000 annual visitors.**

**Local funding**  **for the**  **program (20%)**  **is being**  **provided by**  **the County**  **of Los**  **Alamos, State**  **of New**  **Mexico, and**  **the Los**  **Alamos National**  **Laboratory (contract**  **documents with**  **the Lab**  **are presently**  **under construction)** 
**. A**  **letter of**  **intent has**  **been provided**  **by New**  **Mexico Airlines**  **(Attachment 6)**  **and with**  **two years**  **of work**  **invested in**  **the project**  **thus far,**  **it is**  **anticipated, service**  **will begin** 
**s hortly**  **after award.**  **T he**  **program has**  **been discussed**  **with leaders**  **in the**  **County and**  **Labo ratory**  **and all are supportive. Page**  **1 of**  **10 2010**  **– AIRPORT DESTINATIONS**  **IN DECENDING ORDER Reagan National Airport**  **Washington, DC Dulles International Airport**  **Sterling, VA McGhee Tyson Airport**  **Knoxville, TN Chicago O’Hare International**  **Chicago, IL Atlanta International Airport**  **Atlanta, GA Baltimore/Washington International**  **Maryland Heathrow Airport**  **London Boston Logan International**  **Boston, MA Fanning Field Airport**  **Idaho Falls, ID Tri** **- Cities Airport**  **Pasco, WA Orlando International Airport**  **Orlando, FL San Francisco International**  **San Francisco, CA Greater Rochester International**  **Rochester, NY Dallas/Fort Worth International**  **Texas Salt Lake City International**  **Salt Lake City, UT Charles de Gaulle Airport**  **Paris Denver International**  **Denver, CO Oakland International**  **Oakland , CA**  **Houston Intercontinental**  **Houston, TX Minneapolis St. Paul International**  **Minneapolis ,**  **MN Pittsburgh International Airport**  **Pittsburgh, PA Portland International**  **Portland, OR Augusta Regional Airport**  **Augusta, GA Philadelphia International**  **Phil adelphia, PA**  **Sheremetyevo International Moscow, Russia**  **LaGuardia International New York** **, NY Los Angeles International**  **Los Angeles, CA Columbia Metropolitan**  **Columbia, SC Las Vegas**  **– McCarran**  **Las Vegas, NV Narita International**  **Tokyo, Japan Omaha Eppley Airfield**  **Omaha, NE Raleigh** **- Durham International**  **Morrisville, NC Santa Barbara Municipal Airport**  **Santa Barbara, CA Vienna International**  **Schwechat, Austria Newark Liberty International**  **Newark, NJ Kansas City International**  **Kansas City, MO**  **Seattle -** **Tacoma International Seat** **tle, WA**  **Detroit Metropolitan Detroit, MI** 

**Attachment 2 Page**  **2 of**  **10 2010**  **– AIRPORT DESTINATIONS**  **IN DECENDING ORDER San Diego**  **Lindberg Field San Diego, CA**  **Norfolk International Norfolk, VA**  **San Jose International San Jose** **, CA Cincinnati**  **Hebron, KY Frankfurt**  **– Main Airport**  **Frankfurt, Germany Tampa International**  **Tampa, FL Austin** **- Bergstrom International**  **Austin, TX Spokane International**  **Spokane, WA Tallahassee Regional Airport**  **Tallahassee, FL Gatwick Airport**  **West Sussex, UK Dan County Regional**  **Madison, WI Beijing Capital International**  **Beijing, China Monterey Peninsula**  **Monterey, CA Jacksonville International**  **Jacksonville, FL Dallas Love Field**  **Dallas, TX Huntsville** **- Madison County International**  **Huntsville, AL Chicago Midway**  **Chicago, IL Keahole** **- Kona International**  **Kailua Kona, HI San Antonio International**  **San Antonio, TX Toronto Pearson International**  **Toronto, Canada Charlotte** **- Douglas International**  **Charlotte, NC Port Columbus International**  **Columbus, OH Phoenix Sky Harbor International**  **Phoenix, AZ Brussels National**  **Brussels, Belgium Orange County** **- John Wayne Airport**  **Santa Ana, CA Vancouver International**  **BC, Canada Houston Hobby Airport**  **Houston, TX Metropolitan Nashville**  **Nashville, TN**  **James M Cox Dayton International Vandalia, OH**  **Honolulu International Honolulu, HI**  **Indianapolis International Indianapolis, IN**  **Rapid City Regional Rapid City, SD**  **Richmond International Richmond, VA**  **Kahului Airport Kahului, HI**  **Pocatello Regional**  **Pocatello, ID Borispol International**  **Boryspil, Ukraine Memphis International**  **Memphis, TN Miami International**  **Miami, FL Barcelona** **- Prat airport**  **Barcelona, Spain Cleveland**  **- Hopkins International**  **Cleveland, OH Willard Airport University of**  **Ill i**  **nois Savoy, IL** **Page 3**  **of 10**  **2010 –**  **AIRPORT DESTINATIONS IN DECENDING ORDER**  **Ft. Lauderdale/Hollywood International Fort Lauderdale, FL**  **Prague Ruzyne International Prague, Czech Rep.**  **Savannah/Hilton Head International Savannah, GA**  **Lambert -** **St Louis International Saint Louis, MO**  **Athens International Athens, Greece**  **Charleston International Charleston, SC**  **John F. Kennedy International Queens, NY**  **Marseille Provence Marseille, France**  **T.F. Green Airport Warwick, RI**  **Sacramento International Sacramento, C** **A Geneva International**  **Geneva, Switzerland Palm Springs International**  **Palm Springs, CA Amsterdam Airport**  **Netherlands Elmira Corning Regional**  **Horseheads, NY General Mitchell International**  **Milwaukee, WI Northwest Florida Regional**  **Eglin AFB, FL Bob Hope Airport (Burbank Airport)**  **Burbank, CA Leonardo da Vinci** **- Fiumicino**  **Fiumicino, Italy Kansai International**  **Osaka Bay, Japan Kuala Lumpur International**  **Southeast Asia Munich Airport**  **Munich, Germany Singapore Changi International**  **Singapore Valencia Airport**  **Valencia, Spain Jeju International**  **South Korea Easterwood Airport**  **College Station, TX Colorado Springs Municipal**  **Colorado Springs, CO Manchester International**  **Manchester, UK Melbourne International**  **Melbourne, FL Shanghai Pud**  **ong International Shanghai, China**  **Tucson International Tucson, AZ**  **Zurich Airport (Kloten Airport) Zurich, Switzerland**  **Alexandria International Alexandria, LA**  **Queen Alia International Airport Jordan**  **Beirut International (Beirut Air Base) Beirut, Leb** **anon Bozeman Yellowstone International**  **Belgrade, MT Tancredo Neves International**  **Belo Horizonte, Brazil Grand Bahama International**  **Freeport, Bahamas Madrid**  **- Barajas Airport**  **Madrid, Spain McAllen** **- Miller International**  **McAllen, TX Page**  **4 of**  **10 2010**  **– AIRPORT**  **DESTINATIONS IN DECENDING ORDER**  **LA/Ontario International Ontario, CA**  **Roanoke Regional (Woodrum Field) Roanoke, VA**  **Ottawa/Macdonald**
**- Cartier International**  **Ottawa, Canada Kern County**  **- Meadows Field**  **Bakersfield, CA Chattanooga Metropolitan**  **Chattanooga , TN**  **Jackson Hole Airport Jackson, WY**  **Milano Malpensa Airport Milan, Italy**  **Los Cabos International Mexico**  **Astana International Astana, Kazakhstan**  **Montreal -**  **Pierre Elliott Trudeau Int’l Montreal, QC**  **Playa de Oro International Manzanillo, Mexico**  **Aspen –**  **Pitkin County (Sardy Field) Aspen, CO**  **Bordeaux -**  **Merignac airport Gironde, France**  **Dublin Airport Dublin, Ireland**  **Incheon International South Korea**  **Ataturk International Istanbul, Turkey**  **Ithaca Tompkins Regional Ithaca, NY**  **Kaohsiung Int ernational**  **Kaohsiung, Taiwan John Paul II International**  **Cracow, Poland Capital Region International**  **Lansing, MI Lynchburg Regional**  **Lynchburg, VA South Bend Regional**  **South Bend, IN Warsaw Chopin International**  **Warsaw, Poland Almaty**  **International Almaty, Kazakhstan**  **Albany International Albany, NY**  **Ted Stevens Anchorage International Anchorage, AK**  **Bradley International Windsor Locks, CT**  **Burlington International S Burlington, VT**  **Budapest Liszt Ferenc International Budapest,**  **Hungary Buffalo Niagara International**  **Cheektowaga, NY Cancun International**  **Cancun, Mexico Dresden International**  **Dresden, Germany Des Moines International**  **Des Moines, IA Ezeiza International Airport**  **B uenos Aires**  **Pulkovo Airport (International) St** **. Petersburg, Russia Lyon** **- Saint Exupery Airport**  **Lyon, France Sangster International**  **Montego Bay, Jamaica Louis Armstrong New Orleans Int’l**  **New Orleans, LA San Luis County Regional**  **San Luis Obispo, CA Page**  **5 of**  **10 Lake Tahoe Airport**  **Lake Tahoe, CA**

**2010 –**  **AIRPORT DESTINATIONS IN DECENDING ORDER**  **Tri -** **Cities Regional Tennessee**  **Tulsa International Tulsa, Ok**  **Calgary International Airport Calgary, Canada**  **Rick Husband Amarillo International Amarillo, TX**  **Corona Municipal Corona, CA**  **Garden City Regional Garden City, KS**  **Chippewa County International Sault Ste Marie, MI**  **Cavern City air Terminal Carlsbad, NM**  **Indira Gandhi International West Delhi, India**  **Kemi -** **Torno Kemi, Finland**  **Manas International Bishkek, Kyrgyzstan**  **Gulfport -**  **Biloxi Internatio nal**  **Gulfport, M S**  **Grundy Municipal Grundy, VA**  **Jackson -**  **Evers International Jackson, MS**  **Jorge Chavez International Lima, Peru**  **Cote D’azur International Nice, France**  **Will Rogers World Airport Oklahoma City, OK**  **Henri Coanda Bucharest, Romania**  **H ermanos Serdan International**  **Puebla Atlixco, MX Pensacola International**  **Pensacola, FL Reno/Tahoe International**  **Reno, NV State College Airport (Centre County)**  **State College, PA San Juan** **- Luiz Munoz Marin International**  **San Juan, Puerto Rico Salalah Airpo** **rt Salalah, Oman**  **Sofia International Sofia, Bulgaria**  **Syracuse Hancock International Syracuse, NY**  **Taipei -** **Taoyuan International Taiwan ROC**  **Berlin –**  **Tegel Airport Berlin, Germany**  **Veracruz -** **General Heriberto Jara Int’l Estado Veracruz, MX**  **Lehigh Vall ey International**  **Allentown, PA Appleton** **- Outagami County Regional**  **Appleton, WI Brindisi**  **– Casale Airport**  **Casale, Italy Birmingham International**  **Birmingham, UK Bismark Airport**  **Bismarck, ND Boise Airport**  **Boise, ID Bremen Airport**  **Bremen, Germany**  **Christchurch International New Zealand**  **Copenhagen -**  **Kastrup International Kastrup, Denmark** **Page 6**  **of 10**  **Casper -**  **Natrona County International Casper, WY**  **Corpus Christi International Corpus Christi, TX**  **Daytona Beach International Daytona, FL**  **Dubrovnik Airport Dubrovnik, Croatia** 

**2010 –**  **AIRPORT DESTINATIONS IN DECENDING ORDER**  **Domodedovo International Moscow, Russia**  **Dusseldorf International Dusseldorf, Germany**  **Yerevan -** **Zvartnots Yerevan, Armenia**  **Key West International Key West, FL**  **Fresno Yosemite Inte rnational**  **Fresno, CA Fort Wayne International**  **Fort Wayne, IN Rio de Janeiro International**  **Rio de Janeiro, Brazil Greenville Spartanburg International**  **Greer, SC Great Falls International**  **Great Falls, MT Hannover Airport**  **Hannover, Germany Hamburg A** **irport Hamburg, Germany**  **Helsinki –**  **Vantaa Vantaa, Finland**  **Cataratas International Iguacu**  **- Parana, Brazil**  **Lake Charles Regional Airport Lake Charles, LA**  **Blue Grass Airport Lexington, KY**  **Lihu Airport Lihue, Kauai, HI**  **Lisbon -**  **Portela Lisbon,**  **Portugal Chennai/Maddras International**  **Chennai, India Manchester Airport**  **Manchester, NH Misawa Airport**  **Japan Palm Beach International**  **Palm Beach, FL Bay County**  **Panama City, FL Palermo Airport**  **Punta Raisi, Italy Portland International**  **Por tland, OR**  **Shevchenko Aktau, Kazakhstan**  **Louisville International Louisville, KY**  **Sheridan County Airport Sheridan, WY**  **Sun Valley Airport Bullhead City, AZ**  **Marco Polo International Venice, Italy**  **Malaga Airport Malaga, Spain**  **Kalamazoo Battle Cr eek International**  **Kalamazoo, MI Bangkok International**  **Bangkok, Thailand Bologna Airport**  **Bologna, Italy Chhatarpati Shivaji International**  **Mumbai, India Cape Town International**  **South Africa Charleston** **- Yeager**  **Charleston, WV Columbus Metropolitan**  **Columbus, GA Page**  **7 of**  **10 King Shaka International**  **Durban, South Africa Fayetteville Regional**  **Fayetteville, NC Glacier Park International**  **Kalispell, MT Bishop International**  **Flint, MI Sioux Falls Airport**  **Sioux Falls, SD**

**2010 –**  **AIRPORT DESTINATIONS IN**  **DECENDING ORDER Nizhny Novgorod Internatinal**  **Russia Heraklion** **- Nikos Kazan** **tzakis Int’l Heraklion, Greece**  **Wilmington International Wilmington, NC**  **Osaka International Itami, Japan**  **Kilimanjaro International Kilimanjaro, Tanzania**  **Kingston -**  **Norman Manle y International**  **Jamaica General Brees Field**  **Laramie, WY Lawton** **- Fort Sill Regional**  **Lawton, OK Long Beach Airport**  **Long Beach, CA Daniel Oduber International**  **Liberia, Costa Rica Little Rock National Airport**  **Little Rock, AR Laredo International**  **Laredo, TX La Crosse Municipal**  **La Crosse, WI Nez Perce County Regional**  **Lewiston, ID Lazaro Cardenas**  **Lazaro Cardenas, MX Albert J Ellis Airport**  **Jacksonville, NC Oslo Airport**  **Gardermoen, Norway Newport News** **- Williamsburg Int’l**  **Newport News, VA Phnom Penh International**  **Phonom Penh, Cambodia Port Moresby** **- Jacksons International**  **Papua, New Guinea Tocumen Airport**  **Panama City, Panama Punta Cana Airport**  **Dominican Republic Roberts Field Airport**  **Redmond, OR Diagoras**  **Rhodes, Greece San Pedro Sula** **- La Mesa International**  **La Mesa, Honduras Santo Domingo** **- Las Americas Airport**  **Dominican Republic Shreveport Regional**  **Shreveport, LA Simferopol**  **Simferopol, Ukraine Saint Kitts** **- Robert Bradshaw Int’l**  **Saint Kitts and Nevis Yekaterinburg** **- Kol** **tsovo International Yekaterinburg, Russia**  **Tbilisi International Tbilisi, Georgia**  **Tallinn Airport Tallinn, Estonia**  **Trieste -**  **Ronchi dei Legionari Ronchi Dei Legionari, Italy**  **Mariscal Sucre Airport Quito, Ecuador**  **Chinggis Khaan International Ulan B** **ator, Mongolia Vieques Airport**  **Vieques, Puerto Rico Page**  **8 of**  **10 Zagreb Airport**  **Zagreb, Croatia Abidjan Internationa**  **l Ivory Coast**  **V.C. Bird International St. John’s**  **Antigua**

**2010 –**  **AIRPORT DESTINATIONS IN DECENDING ORDER**  **Abu Dhabi International Abu Dhabi,**  **UAE Asheville Regional**  **Fletcher, NC Bangor International**  **Bangor, ME Birmingham International**  **Birmingham, AL Bangalore International**  **Hebbal, India Brisbane International**  **Brisbane, Australia El Dorado International**  **Bogota, Colombia Southeast Texas Regional**  **Beaumont, TX Basel/Mulhouse Airport**  **Basel, Switzerland Baton Rouge Metropolitan**  **Baton Rouge, LA Charlottesville** **- Albemarle Airport**  **Charlottesville, VA Houghton County Memorial**  **Hancock, MI Cairns Airport**  **Cairns, Austral ia**  **Fontanarossa Airport Cantania, Italy**  **Denpasar -**  **Ngurah Rai International Bali, Indonesia**  **Dubai Internationa l**  **Dubai, UAE Eagle County Regional**  **Eagle, CO Esenboga International**  **Ankara, Turkey Mahlon Sweet Field**  **Eugene, OR Hector International**  **Fargo, ND Fukuoka Airport**  **Fukuoka, Japan Glasgow Airport**  **Paisley, UK Gainesville Regional**  **Gainesville, FL Jaen** **- Federico Garcia Lorca International**  **Granada, Spain Golden Triangle Regional**  **Columbus, MS AB Won Pat International**  **Tamuning, Gua m**  **Atyrau Airport Atyrau, Kazakhstan**  **Hobart International Cambridge, Australia**  **Hefei Luogang International People’s Republic of China**  **Hong Kong International Lantau, Hong Kong**  **Hyderabad Airport Hyderabed, India**  **Wichita Mid -** **Continent Wichita,**  **KS Long Island** **- MacArthur Airport**  **Ronkonkoma, NY Hilo International**  **Hilo, HI Djibouti** **- Ambouli Airport**  **Republic of Djibouti Page**  **9 of**  **10 OR Tambo Internationa**  **l Johannesburg, SA**  **Khrabrovo Airport Kaliningrad, Russia**  **Leeds Bradford International Leeds, UK**  **Ljubljana DD Airport Brnik, Slovenia**  **Lincoln Airport Lincoln, NE**  **Liverpool John Lennon Airport Liverpool, UK** 

**2010 –**  **AIRPORT DESTINATIONS IN DECENDING ORDER**  **Mombasa Moi International Mombasa, Kenya**  **Muscat International Muscate, Oman**  **Harrisbur g International**  **Middlestown, PA Melbourne** **- Tullamarine Airport**  **Gladstone, Australia Mexico City International**  **Benito Juarez, MX Quad City International**  **Moline, IL Minot International**  **Minot, ND Montpellier** **- Mediterranee**  **Maguio Cedex, France Genera**  **l Mariano Escobedo Int’l Monterrey, Mexico**  **Carrasco International Montevideo, Uruguay**  **Myrtle Beach International Myrtle Beach, SC**  **Central Japan International Tokoname, Japan**  **Nuremberg Airport Nuremberg, Germany**  **Naha Airport Okinawa Okinawa, Jap** **an Oporto** **- Francisco Sa Carneiro**  **Porto, Portugal Aeroporto Joao Paulo II**  **Ponta Delgada, Azores Penang International**  **Bayan Lepas, Malaysia Perth Airport**  **Cloverdale, Australia Punta Arenas Airport**  **Punta Arenas, Chile Reggio Calabria Airport**  **Reggio Calabria, Italy Arturo Merino Benitez**  **Santiago, Chile Santa Maria Public Airport**  **Santa Maria, CA Sheppard Air force Base**  **Wichita Falls, TX Stuttgart Airport**  **Stuttgart, Germany Steward International**  **New Windsor, NY Shenzhen** **- Baoan Internati** **onal Guangdong,**  **China Tashkent International**  **Tashkent, Uzbekistan Toulouse** **- Blagnac Airport**  **Blagnac Cedex, France Tromso** **- Langnes Airport**  **Tromso, Norway Trondheim** **- Vaernes Airport**  **Stjordal, Norway Cherry Capital Airport**  **Traverse City, MI Vilnius**  **International Vilnius, Lithuania**  **Wroclaw Nicolaus Copernicus Wroclaw, Poland**  **Fredericton International New Brunswick, Canada** **Page 10**  **of 10**  **Jean Lesage International Quebec, Canada**  **Sudbury Airport Sudbury, Canada**  **Yuma International Yuma, Az** 4 13
10 7

6
3 12
6
5

6

55 <60 min wait at gate 13 >60 min wait at gate 4 non connect 5.6% 

# Los Alamos to Albuquerque All 72 Flights to Washington, D.C. Area

94.4% Attachment 3a2
5

12

7
7

7 10

2
11
11 3 37 < 60 min

37 > 60 min 3 Non connect 3.9%

96.1% 

# All 77 flights from Washington, D.C. Area 

# ...... connection times to LAM flights

Attachment 3b

# Los Alamos to Albuquerque

**Flight Subsidy Calculation**
Assume:

- Nine daily R/T flights per week plus one on Saturday and Sunday

- One way flight subsidy = $58.50

Nine round trip flights per day (18 segments) 

### x 5 days = 90 flight segments One round trip (2 segments) 

### on Saturday and Sunday = 4 flight segments One week = 94 flight segments 94 flight segments x 52 weeks = 4,888 flight segments per year ÷ 12 months One month = 408 flight segments 408 flight segments per month x $58.80 per flight segment = $23,990 per month $23,990 per month x 12 months = One year = **$287,880 per year** (using a subsidy of $58.50 per flight segment)



### Attachment **4**

# Typical Travel H **istory: Los Alamos to Carlsbad**  ( Base information provided by LANL Travel Office)
Average business trip to Carlsbad, NM is 4 days. Most travelers drive. Trip time averages between 10 to 12 hours round trip. Average trip cost is $1,100. Of this amount:

- Lodging , meals, etc. = $ 780

- Mileage costs ( use of POV) = 320

- Average trip to Carlsbad = $1,100



# Round Trip Comparison **Driving vs. Flying with NMA**

Time in route : Cost to travel :

- 10 to 12 hour drive (round trip) 

### $320 mileage

- 3:20 flight (round trip) 

### $225 air fare 7 to 9 hours savings $ 95 savings:

9.1% savings over the cost of driving plus :

- Transportation related lodging costs
.

- Transportation related meals.

- Lost productivity (8 hours saved)

.

**Attachment 5**